Balance sheets for Plasma Screens Corporation along with additional information are provided below.

Additional information for 2018:

1. Net income is $95,000.

2. Sales on account are $1,800,000.

3. Cost of goods sold is $1,100,000.

Required:

1. Calculate the following risk ratios for 2018: (Round your answers to 1 decimal place.)

2. For the same company, will the current ratio always be higher than the acid-test ratio? Yes or no?

PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets: Cash 192,000 120,000 84,000 74,000 Accounts receivable 60,000 75,000 Inventory 6,000 Investments 8,000 Long-term assets: Land 500,000 500,000 Equipment 800,000 800,000 (320,000) (160,000) Less: Accumulated depreciation 1,337,000 1,402,000 Total assets Liabilities and Stockholders' Equity Current liabilities: 172,000 175,000 Accounts payable Interest payable 10,000 4,000 7,000 Income tax payable 6,000 Long-term liabilities: 100,000 250,000 Notes payable Stockholders' equity 800,000 800,000 Common stock. 255,000 160,000 Retained earnings 1,337,000 1,402,000 Total liabilities and stockholders' equity